----

----

----

| Delaware                          | 33-0362767          |
|-----------------------------------|---------------------|
| (State or other jurisdiction      | (I.R.S. Employer    |
| of incorporation or organization) | Identification No.) |

| Large accelerated filer o | Accelerated filer o | Non-accelerated filer o(do not check if a smaller reporting company) | Smaller reporting company x |
|---------------------------|---------------------|----------------------------------------------------------------------|-----------------------------|

----

----

----

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Page   |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |
| PART I.  | FINANCIAL INFORMATION                                                                                                                                                                       |   | 1      |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |
| Item 1.  | Financial Statements.                                                                                                                                                                       |   | 1      |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |
|     | Unaudited Condensed Consolidated Balance Sheets at September 30, 2010 and June 30, 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 1      |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |
|     | Unaudited Condensed Consolidated Statements of Operations for the Three Months Ended                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |
|     | September 30, 2010 and 2009                                                                                                                                                                                |   | 2      |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |
|     | Unaudited Condensed Consolidated Statements of Cash Flows for the Three Months Ended                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |
|     | September 30, 2010 and 2009                                                                                                                                                                                |   | 3      |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |
|     | Notes to Unaudited Condensed Consolidated Financial Statements.                                                                                                                             |   | 4      |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |
| Item 2.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 9      |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |
| Item 4.  | Controls and Procedures.                                                                                                                                                                    |   | 17     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |
| PART II. | OTHER INFORMATION                                                                                                                                                                           |   | 17     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |
| Item 1A. | Risk Factors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 17     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |
| Item 6.  | Exhibits                                                                                                                                                                                    |   | 26     |

----

| LANTRONIX, INC.                                 |
|-------------------------------------------------|
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
|  (In thousands)                            |
|                                            |   |   |   |   |   |   |
|                                            |   | September 30, |   |   | June 30, |   |
|                                            |   | 2010 |   |   | 2010 |   |
| Assets                                          |   |   |   |   |   |   |
| Current assets:                                 |   |   |   |   |   |   |
| Cash and cash equivalents                       |   | $ | 10,458 |   |   | $ | 10,075 |   |
| Accounts receivable, net                        |   |   | 1,765 |   |   |   | 1,342 |   |
| Contract manufacturers' receivable              |   |   | 1,143 |   |   |   | 1,015 |   |
| Inventories, net                                |   |   | 7,509 |   |   |   | 6,873 |   |
| Prepaid expenses and other current assets       |   |   | 329 |   |   |   | 515 |   |
| Deferred tax assets                             |   |   | 542 |   |   |   | 542 |   |
| Total current assets                            |   |   | 21,746 |   |   |   | 20,362 |   |
|                                            |   |   |   |   |   |   |   |   |
| Property and equipment, net                     |   |   | 2,221 |   |   |   | 2,392 |   |
| Goodwill                                        |   |   | 9,488 |   |   |   | 9,488 |   |
| Purchased intangible assets, net                |   |   | 132 |   |   |   | 155 |   |
| Other assets                                    |   |   | 173 |   |   |   | 135 |   |
| Total assets                                    |   | $ | 33,760 |   |   | $ | 32,532 |   |
|                                            |   |   |   |   |   |   |   |   |
| Liabilities and stockholders' equity            |   |   |   |   |   |   |   |   |
| Current liabilities:                            |   |   |   |   |   |   |   |   |
| Accounts payable                                |   | $ | 7,022 |   |   | $ | 6,545 |   |
| Accrued payroll and related expenses            |   |   | 1,654 |   |   |   | 1,568 |   |
| Warranty reserve                                |   |   | 152 |   |   |   | 183 |   |
| Short-term debt                                 |   |   | 667 |   |   |   | 667 |   |
| Other current liabilities                       |   |   | 3,574 |   |   |   | 3,776 |   |
| Total current liabilities                       |   |   | 13,069 |   |   |   | 12,739 |   |
| Non-current liabilities:                        |   |   |   |   |   |   |   |   |
| Long-term liabilities                           |   |   | 586 |   |   |   | 646 |   |
| Long-term capital lease obligations             |   |   | 124 |   |   |   | 153 |   |
| Long-term debt                                  |   |   | 1,333 |   |   |   | 111 |   |
| Deferred tax liabilities                        |   |   | 542 |   |   |   | 542 |   |
| Total non-current liabilities                   |   |   | 2,585 |   |   |   | 1,452 |   |
| Total liabilities                               |   |   | 15,654 |   |   |   | 14,191 |   |
|                                            |   |   |   |   |   |   |   |   |
| Commitments and contingencies                   |   |   |   |   |   |   |   |   |
|                                            |   |   |   |   |   |   |   |   |
| Stockholders' equity:                           |   |   |   |   |   |   |   |   |
| Common stock                                    |   |   | 1 |   |   |   | 1 |   |
| Additional paid-in capital                      |   |   | 191,590 |   |   |   | 191,147 |   |
| Accumulated deficit                             |   |   | (173,884 | ) |   |   | (173,206 | ) |
| Accumulated other comprehensive income          |   |   | 399 |   |   |   | 399 |   |
| Total stockholders' equity                      |   |   | 18,106 |   |   |   | 18,341 |   |
| Total liabilities and stockholders' equity      |   | $ | 33,760 |   |   | $ | 32,532 |   |
|                                            |   |   |   |   |   |   |   |   |
|  See accompanying notes.                   |   |

----

| LANTRONIX, INC.                                                                                                                                                                       |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                                                                                                                             |
|                         (In thousands, except per share data) |
|                                                                                                                                                                                  |   |   |   |   |   |   |
|                                                                                                                                                                                  |   |   |   |   |   |   |
|                                                                                                                                                                                  |   | Three Months Ended |   |
|                                                                                                                                                                                  |   | September 30, |   |
|                                                                                                                                                                                  |   | 2010 |   |   | 2009 |   |
| Net revenue (1)                                                                                                                                                                       |   | $ | 12,192 |   |   | $ | 10,954 |   |
| Cost of revenue                                                                                                                                                                       |   |   | 5,965 |   |   |   | 5,237 |   |
| Gross profit                                                                                                                                                                          |   |   | 6,227 |   |   |   | 5,717 |   |
| Operating expenses:                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Selling, general and administrative                                                                                                                                                   |   |   | 5,053 |   |   |   | 4,620 |   |
| Research and development                                                                                                                                                              |   |   | 1,823 |   |   |   | 1,485 |   |
| Amortization of purchased intangible assets                                                                                                                                           |   |   | 18 |   |   |   | 18 |   |
| Total operating expenses                                                                                                                                                              |   |   | 6,894 |   |   |   | 6,123 |   |
| Loss from operations                                                                                                                                                                  |   |   | (667 | ) |   |   | (406 | ) |
| Interest expense, net                                                                                                                                                                 |   |   | (22 | ) |   |   | (47 | ) |
| Other income (expense), net                                                                                                                                                           |   |   | 29 |   |   |   | (36 | ) |
| Loss before income taxes                                                                                                                                                              |   |   | (660 | ) |   |   | (489 | ) |
| Provision for income taxes                                                                                                                                                            |   |   | 18 |   |   |   | 10 |   |
| Net loss                                                                                                                                                                              |   | $ | (678 | ) |   | $ | (499 | ) |
|                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Net loss per share (basic and diluted)                                                                                                                                                |   | $ | (0.07 | ) |   | $ | (0.05 | ) |
|                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Weighted-average shares (basic and diluted)                                                                                                                                           |   |   | 10,348 |   |   |   | 10,165 |   |
|                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Net revenue from related parties                                                                                                                                                      |   | $ | 241 |   |   | $ | 125 |   |
|   (1)  Includes net revenue from related parties                                                                                                                  |   |   |   |   |   |   |   |   |
|   See accompanying notes.                                                                                                                                                   |   |

----

| LANTRONIX, INC.                                                                           |
|-------------------------------------------------------------------------------------------|
| UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS                                           |
| (In thousands)                                                                            |
|                                                                                      |   | Three Months Ended |   |
|                                                                                      |   | September 30, |   |
|                                                                                      |   | 2010 |   |   | 2009 |   |
| Operating activities                                                                      |   |   |   |   |   |   |
| Net loss                                                                                  |   | $ | (678 | ) |   | $ | (499 | ) |
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |   |   |   |   |   |   |   |   |
| Share-based compensation                                                                  |   |   | 583 |   |   |   | 559 |   |
| Depreciation                                                                              |   |   | 257 |   |   |   | 193 |   |
| Provision (recovery) for inventories                                                      |   |   | 4 |   |   |   | (30 | ) |
| Amortization of purchased intangible assets                                               |   |   | 23 |   |   |   | 28 |   |
| Provision (recovery) for doubtful accounts                                                |   |   | 1 |   |   |   | (5 | ) |
| Changes in operating assets and liabilities:                                              |   |   |   |   |   |   |   |   |
| Accounts receivable                                                                       |   |   | (424 | ) |   |   | 191 |   |
| Contract manufacturers' receivable                                                        |   |   | (128 | ) |   |   | (28 | ) |
| Inventories                                                                               |   |   | (640 | ) |   |   | 406 |   |
| Prepaid expenses and other current assets                                                 |   |   | 125 |   |   |   | 11 |   |
| Other assets                                                                              |   |   | (37 | ) |   |   | (14 | ) |
| Accounts payable                                                                          |   |   | 467 |   |   |   | 172 |   |
| Accrued payroll and related expenses                                                      |   |   | 68 |   |   |   | (313 | ) |
| Warranty reserve                                                                          |   |   | (31 | ) |   |   | - |   |
| Restructuring reserve                                                                     |   |   | - |   |   |   | (45 | ) |
| Other liabilities                                                                         |   |   | (242 | ) |   |   | (152 | ) |
| Cash received related to tenant incentives                                                |   |   | 32 |   |   |   | - |   |
| Net cash (used in) provided by operating activities                                       |   |   | (620 | ) |   |   | 474 |   |
| Investing activities                                                                      |   |   |   |   |   |   |   |   |
| Purchases of property and equipment, net                                                  |   |   | (83 | ) |   |   | (205 | ) |
| Net cash used in investing activities                                                     |   |   | (83 | ) |   |   | (205 | ) |
| Financing activities                                                                      |   |   |   |   |   |   |   |   |
| Proceeds from term loan                                                                   |   |   | 2,000 |   |   |   | - |   |
| Payment of term loan                                                                      |   |   | (778 | ) |   |   | (166 | ) |
| Minimum tax withholding paid on behalf of employees for restricted shares                 |   |   | (131 | ) |   |   | (257 | ) |
| Payment of capital lease obligations                                                      |   |   | (54 | ) |   |   | (67 | ) |
| Net proceeds from issuances of common stock                                               |   |   | - |   |   |   | 150 |   |
| Net cash provided by (used in) financing activities                                       |   |   | 1,037 |   |   |   | (340 | ) |
| Effect of foreign exchange rate changes on cash                                           |   |   | 49 |   |   |   | 54 |   |
| Increase (decrease) in cash and cash equivalents                                          |   |   | 383 |   |   |   | (17 | ) |
| Cash and cash equivalents at beginning of period                                          |   |   | 10,075 |   |   |   | 9,137 |   |
| Cash and cash equivalents at end of period                                                |   | $ | 10,458 |   |   | $ | 9,120 |   |
|                                                                                 |   |   |   |   |   |   |   |   |
|  See accompanying notes.                                                             |   |

----

| 1.  | Basis of Presentation |
|----------|-----------------------|

| 2.  | Computation of Net Loss per Share |
|----------|-----------------------------------|

|                                        |   | Three Months Ended     |   |
|---------------------------------------------|--------|------------------------|--------|
|                                        |   | September 30,          |   |
|                                        |   | 2010                   |   |   | 2009 |   |
|                                        |   | (In thousands          |   |
|                                        |   | except per share data) |   |
| Numerator:                                  |   |                   |   |   |   |   |
| Net loss                                    |   | $                      | (678   | ) |   | $ | (499 | ) |
| Denominator:                                |   |                   |   |   |   |   |   |   |
| Weighted-average shares outstanding         |   |                   | 10,548 |   |   |   | 10,519 |   |
| Less: Unvested common shares outstanding    |   |                   | (200   | ) |   |   | (353 | ) |
| Weighted-average shares (basic and diluted) |   |                   | 10,348 |   |   |   | 10,166 |   |
|                                        |   |                   |   |   |   |   |   |   |
| Net loss per share (basic and diluted)      |   | $                      | (0.07  | ) |   | $ | (0.05 | ) |

|                     |   | Three Months Ended   |   |
|--------------------------|--------|----------------------|--------|
|                     |   | September 30,        |   |
|                     |   | 2010                 |   |   | 2009 |   |
|                     |   |  (In thousands) |   |
| Common stock equivalents |   |                 | 1,195  |   |   |   | 1,389 |   |

----

| 3.  | Inventories |
|----------|-------------|

|                                                                               |   | September 30,  |   |   | June 30, |   |
|------------------------------------------------------------------------------------|--------|----------------|--------|--------|----------|--------|
|                                                                               |   | 2010           |   |   | 2010     |   |
|                                                                               |   | (In thousands) |   |
| Finished goods                                                                     |   | $              | 4,708  |   |     | $      | 4,258 |   |
| Raw materials                                                                      |   |           | 1,825  |   |     |   | 1,390 |   |
| Inventory at distributors                                                          |   |           | 1,955  |   |     |   | 1,924 |   |
| Large scale integration chips *                                                    |   |           | 237    |   |     |   | 516 |   |
| Inventories, gross                                                                 |   |           | 8,725  |   |     |   | 8,088 |   |
| Reserve for excess and obsolete inventory                                          |   |           | (1,216 | )      |     |   | (1,215 | ) |
| Inventories, net                                                                   |   | $              | 7,509  |   |     | $      | 6,873 |   |
|                                                                               |   |           |   |   |     |   |   |   |
| * This item is sold individually and is also embedded into the Company's products. |   |           |   |   |     |
|                                                                               |   |           |   |   |     |   |   |   |

| 4.  | Warranty |
|----------|----------|

|                        |   | Three Months Ended |   | Year Ended |     |
|-----------------------------|--------|--------------------|--------|------------|----------|
|                        |   | September 30,      |   |       | June 30, |   |
|                        |   | 2010               |   |       | 2010     |   |
|                        |   | (In thousands)     |   |
| Beginning balance           |   | $                  | 183    |       |     | $ | 224 |   |
| Charged to cost of revenues |   |               | 41     |       |     |   | 84 |   |
| Usage                       |   |               | (72    | )          |     |   | (125 | ) |
| Ending balance              |   | $                  | 152    |       |     | $ | 183 |   |

| 5.  | Bank Line of Credit and Debt |
|----------|------------------------------|

----

|                                      |   | September 30,  |   |   | June 30, |   |
|-------------------------------------------|--------|----------------|--------|--------|----------|--------|
|                                      |   | 2010           |   |   | 2010     |   |
|                                      |   | (In thousands) |   |
| Term Loan                                 |   | $              | 2,000  |   |     | $      | 778 |   |
| Amount Available under the Revolving Line |   | $              | 1,562  |   |     | $      | 1,031 |   |
| Outstanding letters of credit             |   | $              | 343    |   |     | $      | 343 |   |

| 6.  | Stockholders’ Equity |
|----------|----------------------------|

|                                |   | Three Months Ended |   |
|-------------------------------------|--------|--------------------|--------|
|                                |   | September 30,      |   |
|                                |   | 2010               |   |   | 2009 |   |
|                                |   | (In thousands)     |   |
| Cost of revenues                    |   | $                  | 25     |   |   | $ | 9 |   |
| Selling, general and administrative |   |               | 408    |   |   |   | 423 |   |
| Research and development            |   |               | 150    |   |   |   | 127 |   |
| Total share-basd compensation       |   | $                  | 583    |   |   | $ | 559 |   |

----

|                      |   | Unrecognized   |   |   | Remaining |   |
|---------------------------|--------|----------------|--------|--------|-----------|--------|
|                      |   | Compensation   |   |   | Years     |   |
| Vesting Condition         |   | Cost           |   |   | To Vest   |   |
|                      |   | (In thousands) |   |   |      |   |
| Stock Option Awards:      |   |           |   |   |      |   |
| Service-based             |   | $              | 1,543  |   |      |   |   |   |
| Market- and service-based |   |           | 218    |   |      |   |   |   |
| Stock option awards       |   | $              | 1,761  |   |      |   | 2.4 |   |
|                      |   |           |   |   |      |   |   |   |
| Restricted Stock Awards:  |   |           |   |   |      |   |   |   |
| Service-based             |   | $              | 564    |   |      |   |   |   |
| Market- and service-based |   |           | 12     |   |      |   |   |   |
| Restricted stock awards   |   | $              | 576    |   |      |   | 1.8 |   |

|                                                 |   | Number of |      |
|------------------------------------------------------|--------|-----------|-----------|
|                                                 |   | Shares    |      |
| Balance of options outstanding at June 30, 2010      |   |      | 1,890,339 |   |
| Options granted                                      |   |      | 44,680    |   |
| Options forfeited                                    |   |      | (2,898    | ) |
| Options expired                                      |   |      | (19,846   | ) |
| Options exercised                                    |   |      | -         |   |
| Balance of options outstanding at September 30, 2010 |   |      | 1,912,275 |   |

|                                                 |   | Three Months Ended |   |
|------------------------------------------------------|--------|--------------------|--------|
|                                                 |   | September 30,      |   |
|                                                 |   | 2010               |   |   | 2009 |   |
| Weighted-average grant date fair value per share     |   | $                  | 2.84   |   |   | $ | 1.86 |   |
| Weighted-average grant date exercise price per share |   | $                  | 4.24   |   |   | $ | 2.58 |   |

----

|                                              |   |      |    |   | Weighted     |   |
|---------------------------------------------------|--------|-----------|---------|--------|--------------|--------|
|                                              |   |      |    |   | Average      |   |
|                                              |   | Number of |    |   | Grant - Date |   |
|                                              |   | Shares    |    |   | Fair Value   |   |
|                                              |   | Unvested  |    |   | per Share    |   |
| Balance of nonvested shares at June 30, 2010      |   |      | 291,646 |   |         | $      | 3.16 |   |
| Granted                                           |   |      | -       |   |         |   | - |   |
| Forfeited                                         |   |      | (1,855  | )      |         |   | 3.00 |   |
| Vested                                            |   |      | (90,208 | )      |         |   | 3.08 |   |
| Balance of nonvested shares at September 30, 2010 |   |      | 199,583 |   |         | $      | 3.20 |   |

|                        |   | Three Months Ended |   |
|-----------------------------|--------|--------------------|--------|
|                        |   | September 30,      |   |
|                        |   | 2010               |   |   | 2009 |   |
|                        |   | (In thousands)     |   |
| Fair value of shares vested |   | $                  | 345    |   |   | $ | 348 |   |

| 7.  | Income Taxes |
|----------|--------------|

|               |   | Three Months Ended |   |
|--------------------|--------|--------------------|--------|
|               |   | September 30,      |   |
|               |   | 2010               |   |   | 2009 |   |
| Effective tax rate |   |               | 3%     |   |   |   | 2% |   |

----

| 8.  | Comprehensive Income (Loss) |
|----------|-----------------------------|

|                                                  |   | Three Months Ended |   |
|-------------------------------------------------------|--------|--------------------|--------|
|                                                  |   | September 30,      |   |
|                                                  |   | 2010               |   |   | 2009 |   |
|                                                  |   | (In thousands)     |   |
| Net loss                                              |   | $                  | (678   | ) |   | $ | (499 | ) |
| Other comprehensive income (loss):                    |   |               |   |   |   |   |   |   |
| Change in translation adjustments, net of taxes of $0 |   |               | -      |   |   |   | 47 |   |
| Total comprehensive loss                              |   | $                  | (678   | ) |   | $ | (452 | ) |

| 9.  | Litigation |
|----------|------------|

----

|   | ·  | Net revenue was $12.2 million for the fiscal quarter ended September 30, 2010, an increase of $1.2 million or 11.3%, compared to $11.0 million for the fiscal quarter ended September 30, 2009. The increase was primarily the result of a $1.1 million, or 13.1%, increase in sales of our device enablement product lines and a $155,000, or 7.7%, increase in sales of our device management product lines, in both cases primarily due to increased unit sales. |
|--------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | ·  | Gross profit margin was 51.1% for the fiscal quarter ended September 30, 2010, compared to 52.2% for the fiscal quarter ended September 30, 2009. The decrease in gross profit margin as a percent of net revenue was due to a change in product mix during the quarter, an increase in freight costs due to expediting charges relating to component and product shortages, transitional costs associated with the implementation of third-party logistics providers in Los Angeles and Hong Kong for inventory management, and an increase in payroll costs. Although payroll costs were higher during the three months ended September 30, 2010, they actually returned to normal levels due to the suspension of a company-wide furlough program that was in effect during the three months ended September 30, 2009. |
|--------|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·  | Loss from operations was $667,000 for the fiscal quarter ended September 30, 2010, compared to $406,000 for the fiscal quarter ended September 30, 2009. The loss from operations in the current fiscal quarter was negatively impacted by approximately $200,000 in legal and consulting expenses related to the proxy contest initiated by a dissident director and shareholder. |
|--------|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·  | Net loss was $678,000, or $0.07 per basic and diluted share, for the fiscal quarter ended September 30, 2010, compared to $499,000, or $0.05 per basic and diluted share, for the fiscal quarter ended September 30, 2009. The net loss in the current fiscal quarter was negatively impacted by approximately $200,000 in legal and consulting expenses related to the proxy contest. |
|--------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·  | Cash and cash equivalents were $10.5 million as of September 30, 2010, an increase of $383,000, compared to $10.1 million as of June 30, 2010. |
|--------|--------------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·  | Net accounts receivable were $1.8 million as of September 30, 2010, an increase of $423,000, compared to $1.3 million as of June 30, 2010. Days sales outstanding (“DSO”) in receivables were 11 days for the fiscal quarter ended September 30, 2010 compared to 15 days for the fiscal quarter ended June 30, 2010. Our accounts receivable and DSO are primarily affected by the timing of shipments within a quarter, our collections performance and the fact that a significant portion of our revenues are recognized on a sell-through basis (upon shipment from distributor inventories rather than as goods are shipped by us to distributors). |
|--------|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·  | Net inventories were $7.5 million as of September 30, 2010, compared to $6.9 million as of June 30, 2010. Inventory turns were 3.3 turns for the fiscal quarter ended September 30, 2010 compared to 3.5 turns for the fiscal quarter ended June 30, 2010. |
|--------|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                        |   | Three Months Ended |   |
|---------------------------------------------|--------|--------------------|--------|
|                                        |   | September 30,      |   |
|                                        |   | 2010               |   |   | 2009 |   |
|                                        |   |               |   |   |   |   |
| Net revenues                                |   |               | 100.0% |   |   |   | 100.0% |   |
| Cost of revenues                            |   |               | 48.9%  |   |   |   | 47.8% |   |
| Gross profit                                |   |               | 51.1%  |   |   |   | 52.2% |   |
| Operating expenses:                         |   |               |   |   |   |   |   |   |
| Selling, general and administrative         |   |               | 41.4%  |   |   |   | 42.2% |   |
| Research and development                    |   |               | 15.0%  |   |   |   | 13.6% |   |
| Amortization of purchased intangible assets |   |               | 0.1%   |   |   |   | 0.2% |   |
| Total operating expenses                    |   |               | 56.5%  |   |   |   | 55.9% |   |
| Loss from operations                        |   |               | (5.5%  | ) |   |   | (3.7% | ) |
| Interest expense, net                       |   |               | (0.2%  | ) |   |   | (0.4% | ) |
| Other income (expense), net                 |   |               | 0.2%   |   |   |   | (0.3% | ) |
| Loss before income taxes                    |   |               | (5.4%  | ) |   |   | (4.5% | ) |
| Provision for income taxes                  |   |               | 0.1%   |   |   |   | 0.1% |   |
| Net loss                                    |   |               | (5.6%  | ) |   |   | (4.6% | ) |

|              |   | Three Months Ended September 30,         |   |   |     |   |   |
|-------------------|--------|------------------------------------------|--------|--------|----------|--------|--------|
|              |   |                                     |   |   | % of Net |   |   |   |   |   | % of Net |   | Change |   |
|              |   | 2010                                     |   |   | Revenue  |   |   | 2009 |   |   | Revenue |   | $ |   |   | % |   |
|              |   |  (In thousands, except percentages) |   |
| Device enablement |   | $                                        | 9,883  |   |     |   | 81.1%  |   |   | $ | 8,740 |   |   |   | 79.8% |   |   | $ | 1,143 |   |   |   | 13.1% |   |
| Device management |   |                                     | 2,158  |   |     |   | 17.7%  |   |   |   | 2,003 |   |   |   | 18.3% |   |   |   | 155 |   |   |   | 7.7% |   |
| Device networking |   |                                     | 12,041 |   |     |   | 98.8%  |   |   |   | 10,743 |   |   |   | 98.1% |   |   |   | 1,298 |   |   |   | 12.1% |   |
| Non-core          |   |                                     | 151    |   |     |   | 1.2%   |   |   |   | 211 |   |   |   | 1.9% |   |   |   | (60 | ) |   |   | (28.4% | ) |
| Net revenue       |   | $                                        | 12,192 |   |     |   | 100.0% |   |   | $ | 10,954 |   |   |   | 100.0% |   |   | $ | 1,238 |   |   |   | 11.3% |   |

----

|         |   | Three Months Ended September 30,   |   |   |     |
|--------------|--------|------------------------------------|--------|--------|----------|
|         |   |                               |   |   | % of Net |   |   |   |   | % of Net |   | Change |   |
|         |   | 2010                               |   |   | Revenue  |   | 2009 |   |   | Revenue |   | $ |   |   | % |   |
|         |   | (In thousands, except percentages) |   |
| Americas     |   | $                                  | 6,571  |   |     |   | 53.9% |   |   | $ | 6,251 |   |   |   | 57.1% |   |   | $ | 320 |   |   |   | 5.1% |   |
| EMEA         |   |                               | 3,531  |   |     |   | 29.0% |   |   |   | 2,909 |   |   |   | 26.6% |   |   |   | 622 |   |   |   | 21.4% |   |
| Asia Pacific |   |                               | 2,090  |   |     |   | 17.1% |   |   |   | 1,794 |   |   |   | 16.3% |   |   |   | 296 |   |   |   | 16.5% |   |
| Net revenue  |   | $                                  | 12,192 |   |     |   | 100.0% |   |   | $ | 10,954 |   |   |   | 100.0% |   |   | $ | 1,238 |   |   |   | 11.3% |   |

|         |   | Three Months Ended September 30,   |   |   |     |   |   |   |
|--------------|--------|------------------------------------|--------|--------|----------|--------|--------|--------|
|         |   |                               |   |   | % of Net |   |   |   |   |   | % of Net |   |   | Change |   |
|         |   | 2010                               |   |   | Revenue  |   |   | 2009   |   |   | Revenue |   |   | $ |   |   | % |   |
|         |   | (In thousands, except percentages) |   |
| Gross profit |   | $                                  | 6,227  |   |     |   | 51.1%  |   |   | $ | 5,717 |   |   |   | 52.2% |   |   | $ | 510 |   |   |   | 8.9% |   |

----

|                                   |   | Three Months Ended September 30,   |   |     |   |   |   |     |
|----------------------------------------|--------|------------------------------------|--------|----------|--------|--------|--------|----------|
|                                   |   |                               |   | % of Net |   |   |   | % of Net |   | Change |
|                                   |   | 2010                               |   | Revenue  |   | 2009   |   | Revenue  |   | $ |   |   | % |
|                                   |   | (In thousands, except percentages) |   |
| Personnel-related expenses             |   | $                                  | 2,557  |     |   |   | $      | 2,398    |   |   |   | $ | 159 |   |   |   | 6.6 | % |
| Professional fees and outside services |   |                               | 806    |     |   |   |   | 616      |   |   |   |   | 190 |   |   |   | 30.8 | % |
| Advertising and marketing              |   |                               | 450    |     |   |   |   | 458      |   |   |   |   | (8 | ) |   |   | (1.7 | %) |
| Facilities                             |   |                               | 257    |     |   |   |   | 328      |   |   |   |   | (71 | ) |   |   | (21.6 | %) |
| Share-based compensation               |   |                               | 408    |     |   |   |   | 423      |   |   |   |   | (15 | ) |   |   | (3.5 | %) |
| Depreciation                           |   |                               | 165    |     |   |   |   | 133      |   |   |   |   | 32 |   |   |   | 24.1 | % |
| Bad debt expense                       |   |                               | 1      |     |   |   |   | (5       | ) |   |   |   | 6 |   |   |   | 120.0 | % |
| Other                                  |   |                               | 409    |     |   |   |   | 269      |   |   |   |   | 140 |   |   |   | 52.0 | % |
| Selling, general and administrative    |   | $                                  | 5,053  |     | 41.4%  |   | $      | 4,620    |   | 42.2% |   | $ | 433 |   |   |   | 9.4 | % |

|                                   |   | Three Months Ended September 30,   |   |     |
|----------------------------------------|--------|------------------------------------|--------|----------|
|                                   |   |                               |   | % of Net |   |   |   | % of Net |   | Change |
|                                   |   | 2010                               |   | Revenue  |   | 2009 |   | Revenue |   | $ |   |   | % |
|                                   |   | (In thousands, except percentages) |   |
| Personnel-related expenses             |   | $                                  | 1,123  |     |   |   | $ | 973 |   |   |   | $ | 150 |   |   |   | 15.4 | % |
| Facilities                             |   |                               | 267    |     |   |   |   | 244 |   |   |   |   | 23 |   |   |   | 9.4 | % |
| Professional fees and outside services |   |                               | 191    |     |   |   |   | 48 |   |   |   |   | 143 |   |   |   | 297.9 | % |
| Share-based compensation               |   |                               | 150    |     |   |   |   | 127 |   |   |   |   | 23 |   |   |   | 18.1 | % |
| Depreciation                           |   |                               | 12     |     |   |   |   | 16 |   |   |   |   | (4 | ) |   |   | (25.0 | %) |
| Other                                  |   |                               | 80     |     |   |   |   | 77 |   |   |   |   | 3 |   |   |   | 3.9 | % |
| Research and development               |   | $                                  | 1,823  |     | 15.0% |   | $ | 1,485 |   | 13.6% |   | $ | 338 |   |   |   | 22.8 | % |

----

|               |   | Three Months Ended |   |
|--------------------|--------|--------------------|--------|
|               |   | September 30,      |   |
|               |   | 2010               |   |   | 2009 |   |
| Effective tax rate |   |               | 3%     |   |   |   | 2% |   |

|                            |   | September 30,  |   |   | June 30, |   |   | Increase   |   |
|---------------------------------|--------|----------------|--------|--------|----------|--------|--------|------------|--------|
|                            |   | 2010           |   |   | 2010     |   |   | (Decrease) |   |
|                            |   | (In thousands) |   |
|  Working capital           |   | $              | 8,677  |   |     | $      | 7,623  |       |   | $ | 1,054 |   |
|  Cash and cash equivalents |   | $              | 10,458 |   |     | $      | 10,075 |       |   | $ | 383 |   |

----

|                                      |   | September 30,  |   | June 30, |   |
|-------------------------------------------|--------|----------------|--------|----------|--------|
|                                      |   | 2010           |   |     | 2010   |   |
|                                      |   | (In thousands) |   |
| Term Loan                                 |   | $              | 2,000  |     |   | $ | 778 |   |
| Amount Available under the Revolving Line |   | $              | 1,562  |     |   | $ | 1,031 |   |
| Outstanding letters of credit             |   | $              | 343    |     |   | $ | 343 |   |

|                                                |   | Three Months Ended |   |
|-----------------------------------------------------|--------|--------------------|--------|
|                                                |   | September 30,      |   |
|                                                |   | 2010               |   |   | 2009 |   |
|                                                |   | (In thousands)     |   |
| Net cash provided by (used in):                     |   |               |   |   |   |   |
| Net loss                                            |   | $                  | (678   | ) |   | $ | (499 | ) |
| Non-cash operating expenses, net                    |   |               | 868    |   |   |   | 745 |   |
| Changes in operating assets and liabilities:        |   |               |   |   |   |   |   |   |
| Accounts receivable                                 |   |               | (424   | ) |   |   | 191 |   |
| Contract manufacturers' receivable                  |   |               | (128   | ) |   |   | 406 |   |
| Inventories                                         |   |               | (640   | ) |   |   | (28 | ) |
| Prepaid expenses and other current assets           |   |               | 125    |   |   |   | 11 |   |
| Other assets                                        |   |               | (37    | ) |   |   | (14 | ) |
| Accounts payable                                    |   |               | 467    |   |   |   | 172 |   |
| Accrued payroll and related expenses                |   |               | 68     |   |   |   | (313 | ) |
| Warranty reserve                                    |   |               | (31    | ) |   |   | - |   |
| Restructuring reserve                               |   |               | -      |   |   |   | (45 | ) |
| Other liabilities                                   |   |               | (242   | ) |   |   | (152 | ) |
|  Cash received related to tenant incentives    |   |               | 32     |   |   |   | - |   |
| Net cash (used in) provided by operating activities |   |               | (620   | ) |   |   | 474 |   |
| Net cash used in investing activities               |   |               | (83    | ) |   |   | (205 | ) |
| Net cash (used in) provided by financing activities |   |               | 1,037  |   |   |   | (340 | ) |
| Effect of foreign exchange rate changes on cash     |   |               | 49     |   |   |   | 54 |   |
| Increase (decrease) in cash and cash equivalents    |   | $                  | 383    |   |   | $ | (17 | ) |

----

|   | · | responding to proxy contests and other actions by activist stockholders can be costly and time-consuming, could be disruptive to our operations and could divert the attention of management and our employees from operating the business. For example, in connection with the contested proxy, we incurred approximately $200,000 in expenses during the fiscal quarter ended September 30, 2010 and anticipate spending between $300,000 to $500,000 on the proxy contest during the fiscal quarter ended December 31, 2010; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | perceived uncertainties as to our future direction may impact our existing or potential collaborations or strategic relationships; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | if individuals are elected to our Board of Directors with their own specific agenda for the Company, it may adversely affect our ability to effectively and timely implement our strategic plan. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | changes in business and economic conditions, including the recent global economic recession; |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | · | changes in the mix of net revenue attributable to higher-margin and lower-margin products; |
|--------|--------|--------------------------------------------------------------------------------------------|

|   | · | customers’ decisions to defer or accelerate orders; |
|--------|--------|-----------------------------------------------------------|

|   | · | variations in the size or timing of orders for our products; |
|--------|--------|--------------------------------------------------------------|

|   | · | changes in demand for our products; |
|--------|--------|-------------------------------------|

|   | · | fluctuations in exchange rates; |
|--------|--------|---------------------------------|

|   | · | defects and other product quality problems; |
|--------|--------|---------------------------------------------|

|   | · | loss or gain of significant customers; |
|--------|--------|----------------------------------------|

|   | · | short-term fluctuations in the cost or availability of our critical components; |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | announcements or introductions of new products by our competitors; |
|--------|--------|--------------------------------------------------------------------|

|   | · | effects of terrorist attacks in the U.S. and abroad; |
|--------|--------|------------------------------------------------------|

|   | · | natural disasters in the U.S. and abroad; |
|--------|--------|-------------------------------------------|

|   | · | changes in demand for devices that incorporate our products; and |
|--------|--------|------------------------------------------------------------------|

|   | · | our customers’ decisions to integrate network access and control directly onto their own platforms. |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

----

|                      |   | Three Months Ended |   |
|---------------------------|--------|--------------------|--------|
|                      |   | September 30,      |   |
|                      |   | 2010               |   |   | 2009 |   |
| Top five customers (1)(2) |   |               | 42.3%  |   |   |   | 37.6% |   |
| Tech Data                 |   |               | 8.2%   |   |   |   | 10.8% |   |
| Ingram Micro              |   |               | 13.6%  |    |   |   | 7.9% |   |

|   | (1) | Includes Ingram Micro and Tech Data |
|--------|-----|-------------------------------------|

|   | (2) | All top five customers are distributors |
|--------|-----|-----------------------------------------|

----

----

----

|   | · | reduced control over delivery schedules, quality assurance, manufacturing yields and production costs; |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|   | · | lack of guaranteed production capacity or product supply; and |
|--------|--------|---------------------------------------------------------------|

|   | · | reliance on these manufacturers to maintain competitive manufacturing technologies. |
|--------|--------|-------------------------------------------------------------------------------------|

|         |   | Three Months Ended September 30,   |   |   |     |
|--------------|--------|------------------------------------|--------|--------|----------|
|         |   |                               |   |   | % of Net |   |   |   |   | % of Net |   | Change |   |
|         |   | 2010                               |   |   | Revenue  |   | 2009 |   |   | Revenue |   | $ |   |   | % |   |
|         |   | (In thousands, except percentages) |   |
| Americas     |   | $                                  | 6,571  |   |     |   | 53.9% |   |   | $ | 6,251 |   |   |   | 57.1% |   |   | $ | 320 |   |   |   | 5.1% |   |
| EMEA         |   |                               | 3,531  |   |     |   | 29.0% |   |   |   | 2,909 |   |   |   | 26.6% |   |   |   | 622 |   |   |   | 21.4% |   |
| Asia Pacific |   |                               | 2,090  |   |     |   | 17.1% |   |   |   | 1,794 |   |   |   | 16.3% |   |   |   | 296 |   |   |   | 16.5% |   |
| Net revenue  |   | $                                  | 12,192 |   |     |   | 100.0% |   |   | $ | 10,954 |   |   |   | 100.0% |   |   | $ | 1,238 |   |   |   | 11.3% |   |

|   | · | unexpected changes in regulatory requirements, taxes, trade laws and tariffs; |
|--------|--------|-------------------------------------------------------------------------------|

|   | · | reduced protection for intellectual property rights in some countries; |
|--------|--------|------------------------------------------------------------------------|

|   | · | differing labor regulations; |
|--------|--------|------------------------------|

|   | · | compliance with a wide variety of complex regulatory requirements; |
|--------|--------|--------------------------------------------------------------------|

----

|   | · | fluctuations in currency exchange rates; |
|--------|--------|------------------------------------------|

|   | · | changes in a country’s or region’s political or economic conditions; |
|--------|--------|----------------------------------------------------------------------------------|

|   | · | effects of terrorist attacks abroad; |
|--------|--------|--------------------------------------|

|   | · | greater difficulty in staffing and managing foreign operations; and |
|--------|--------|---------------------------------------------------------------------|

|   | · | increased financial accounting and reporting burdens and complexities. |
|--------|--------|------------------------------------------------------------------------|

|                                                                               |   | September 30,  |   |   | June 30, |   |
|------------------------------------------------------------------------------------|--------|----------------|--------|--------|----------|--------|
|                                                                               |   | 2010           |   |   | 2010     |   |
|                                                                               |   | (In thousands) |   |
| Finished goods                                                                     |   | $              | 4,708  |   |     | $      | 4,258 |   |
| Raw materials                                                                      |   |           | 1,825  |   |     |   | 1,390 |   |
| Inventory at distributors                                                          |   |           | 1,955  |   |     |   | 1,924 |   |
| Large scale integration chips *                                                    |   |           | 237    |   |     |   | 516 |   |
| Inventories, gross                                                                 |   |           | 8,725  |   |     |   | 8,088 |   |
| Reserve for excess and obsolete inventory                                          |   |           | (1,216 | )      |     |   | (1,215 | ) |
| Inventories, net                                                                   |   | $              | 7,509  |   |     | $      | 6,873 |   |
|                                                                               |   |           |   |   |     |   |   |   |
| * This item is sold individually and is also embedded into the Company's products. |   |           |   |   |     |
|                                                                               |   |           |   |   |     |   |   |   |

----

|   | · | be time-consuming, costly and/or result in litigation; |
|--------|--------|--------------------------------------------------------|

|   | · | divert management’s time and attention from developing our business; |
|--------|--------|----------------------------------------------------------------------------|

|   | · | require us to pay monetary damages, including treble damages if we are held to have willfully infringed; |
|--------|--------|----------------------------------------------------------------------------------------------------------|

----

|   | · | require us to enter into royalty and licensing agreements that we would not normally find acceptable; |
|--------|--------|-------------------------------------------------------------------------------------------------------|

|   | · | require us to stop selling or to redesign certain of our products; or |
|--------|--------|-----------------------------------------------------------------------|

|   | · | require us to satisfy indemnification obligations to our customers. |
|--------|--------|---------------------------------------------------------------------|

|   | · | laws and contractual restrictions might not be sufficient to prevent misappropriation of our technology or deter others from developing similar technologies; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | other companies might claim common law trademark rights based upon use that precedes the registration of our marks; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------|

|   | · | other companies might assert other rights to market products using our trademarks; |
|--------|--------|------------------------------------------------------------------------------------|

|   | · | policing unauthorized use of our products and trademarks is difficult, expensive and time-consuming, and we might be unable to determine the extent of this unauthorized use; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | courts may determine that our software programs use open source software in such a way that deprives the entire programs of intellectual property protection; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | current federal laws that prohibit software copying provide only limited practical protection from software pirates. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

----

| Exhibit |   |                                                                                                                                                                                                                  |
|---------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number  |   | Description of Document                                                                                                                                                                                               |
|    |   |                                                                                                                                                                                                                  |
| 10.1    |   | Amendment to Loan and Security Agreement                                                                                                                                                                              |
| 10.2    |   | 2010 Inducement Equity Incentive Plan                                                                                                                                                                                 |
| 10.3    |   | 2010 Inducement Equity Incentive Plan Stock Option Agreement                                                                                                                                                          |
| 31.1    |   | Certification of Principal Executive Officer and Principal Financial Officer pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 31.2    |   | Certification of Principal Executive Officer and Principal Financial Officer pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 32.1    |   | Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*                                  |

----

|                   | LANTRONIX, INC. |                                  |
|------------------------|-----------------|---------------------------------------|
|                   | (Registrant)    |                                  |
|                   |            |                                  |   |
| Date: November 8, 2010 | By:             | /s/ Jerry D. Chase                    |   |
|                   |            | Jerry D. Chase                        |   |
|                   |            | President and Chief Executive Officer |   |
|                   |            | (Principal Executive Officer)         |   |
|                   |            |                                  |   |
|                   |            |                                  |   |
|                   | By:             | /s/ Reagan Y. Sakai                   |   |
|                   |            | Reagan Y. Sakai                       |   |
|                   |            | Chief Financial Officer and Secretary |   |
|                   |            | (Principal Financial Officer)         |   |

----

| Exhibit |   |                                                                                                                                                                                                                  |
|---------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number  |   | Description of Document                                                                                                                                                                                               |
|    |   |                                                                                                                                                                                                                  |
| 10.1    |   | Amendment to Loan and Security Agreement                                                                                                                                                                              |
| 10.2    |   | 2010 Inducement Equity Incentive Plan                                                                                                                                                                                 |
| 10.3    |   | 2010 Inducement Equity Incentive Plan Stock Option Agreement                                                                                                                                                          |
| 31.1    |   | Certification of Principal Executive Officer and Principal Financial Officer pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 31.2    |   | Certification of Principal Executive Officer and Principal Financial Officer pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 32.1    |   | Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*                                  |

----